Citigroup Buys Wachovia

http://www.EmploymentCrossing.com From IndyMac, Merrill Lynch, and WaMu to Lehman Brothers, AIG, Freddie and Fannie, you can add Wachovia to the list of companies changing spots on the financial totem poll. In a deal put together by the FDIC, with the blessing of the Treasury Department and the Fed, Citigroup will be acquiring the banking operations of the Charlotte, North Carolina-based Wachovia. With the proposed government $700 billion dollar bailout still up in the air, Citigroup will pay $2.1 billion dollars to take over $700 billion dollars in Wachovia assets. Citi will be assuming $52 billion dollars of Wachovia debt and absorbing $42 billion dollars worth of losses in $312 billion dollars of the banks loans. Some big numbers involved no doubt, but the acquisition was a move that will protect the FDICs risk of another bank collapse. Wachovia was seized last week by Federal regulators, but the FDIC insists it was a move to protect from another IndyMac or Washington Mutual pitfall. At this point, customers, employees, and vendors all have been assured by the Fed and the FDIC that the transition will be smooth and it will be business as usual during the takeover. As Citigroup assumes the business of Wachovia, the company will sell off $10 billion dollars in common stock to raise capital. Citi joins the pedestal of the banking Big Three, including Bank of America and JP Morgan Chase, who also recently acquired banks in despair.

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• Citigroup Buys Wachovia
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• JP Morgan Chase
• AIG
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• Lehman Brothers

[waddleduckie1]

Wells fargo bought Wachovia and Citigroup whines.